Law firms in London had active requirements for office space in the capital of 1.35m sq ft at the end of Q1 2024 – a 37% quarter-on-quarter increase, according to new data from Knight Frank.
The company’s research also found that London’s legal sector has more than 12m sq ft of lease expiries between now and the end of 2030, with annual take-up in the coming years expected to exceed the 1.6m sq ft of activity recorded in 2022 and the 838,000 sq ft of take-up in 2023.
More than two thirds (67%) of demand from legal firms is focused on the City and Southbank sub-markets.
Richard Proctor, head of London tenant representation at Knight Frank, said: “We have seen strong demand for best-in-class offices from the legal sector in recent years, driven in part by the expansion of numerous US firms in the London, and also as a result of the recognition by numerous firms of the important strategic role great offices play when it comes to attracting and retaining talent, and increasing collaboration to drive productivity.
“While quarterly take-up has softened this quarter due to the timing of lease events and seasonal trends, our data on live requirements and long-term lease events suggests law firms will drive leasing activity in the City, in particular, in the coming years and will be competing for the next generation of office buildings currently under construction. The continued delivery of new and refurbished prime office space in the City is vital if London is to support the growth of the sector and cement its position as the leading global hub for the legal industry.”
